Managing debt effectively
Debtsafe featured in an article on Spice4Life.co.za. In this article Debtsafe gave some insight as to why some households manage their debt more effectively than others.
Some households are better at living within their means and defining what is unnecessary spending. They generally manage their finances more effectively and as a result do not become over indebted. They are simply better at cutting back on unnecessary spending and know how to set up their budgets effectively.
South African are notoriously bad at saving and are huge fans of retail accounts. This affects their ability to manage debt effectively. Taking on debt on a small scale might not seem like a huge financial responsibility but at the end of the day it all adds up.
Household that manage their finances effectively would rather save for something than apply for credit and making a creditor rich in the process. By managing debt effectively they are able to save and create a safety net for when unexpected expenses arise.
Follow the link below to read the full article on Spice4Life.co.za